Investment firm L Catterton has entered into a definitive agreement to invest in South Indian restaurant group Nandhana Foods, as it targets further growth in India’s expanding food-services market.

The investment will support Nandhana Foods’ expansion and provide access to L Catterton’s restaurant-sector expertise and operating capabilities. Financial details of the transaction were not disclosed.

Nandhana Foods has been serving South Indian cuisine for more than three decades, building its proposition around authenticity, food quality, freshness and menu variety. Its customisable spice profiles have also helped the group develop a loyal customer base.

“Nandhana Foods’ founding family has built a distinctive and scalable business with a strong consumer proposition and attractive unit economics,” said L Catterton partner Vikram Kumaraswamy. 

“It has expanded the business in a disciplined manner and ensured that its restaurants remain anchored in high quality and consistency. We believe there is significant headroom for additional growth by further deepening and broadening its presence in South India and penetrating other markets.” 

L Catterton has invested in around 30 restaurant businesses globally, including Dishoom, PF Chang’s, Velvet Taco, Baja Fresh and Mendocino Farms.

Last year, the investment firm took a stake in Japan-based multi-concept restaurant group Huge, with the partnership aimed at supporting its growth in Japan and international markets.